Is the British-made car sales boom the most upmarket evidence of our economic recovery?

WHEN the recession struck a chill wind blew through the luxury car market.

Top of the shopping list for well-heeled buyers are the Rolls-Royce Phantom II [GETTY]

As even millionaires tightened their belts and corporate bonuses became scarce it seemed certain two of Britain's most iconic brands Rolls-Royce and Bentley would suffer badly.

Industry experts predicted rocky times for the famous pair.

Sales dipped, causing the doommongers to nod their heads knowingly.

In 2009 Bentley took the drastic step of temporarily halting production at its factory in Crewe.

This makes the latest figures from the two manufacturers all the more remarkable.

Since the depths of the recession Rolls-Royce and Bentley sales have tripled, according to the motor trade association, and last year both achieved record sales.

Bentley produced 10,120 cars last year and bosses plan to invest £800million to increase output at Crewe to 15,000 vehicles by 2018.

It's an equally rosy picture at Rolls-Royce, which delivered 3,630 cars last year and is to create 100 new jobs at its factory at Goodwood, West Sussex, where bespoke models are made.

Both are cashing in on huge demand from overseas. Exports to emerging markets such as China and Russia, as well as traditional hot spots the US and mainland Europe, are booming.

There's no doubt the Chinese love their Rollers - one in every four built is now sold there.

This is despite the barriers to car ownership in the big Chinese cities.

Curbs on congestion, pollution and rampant consumerism mean would-be owners must enter a lottery to be allowed to buy a new car and face punitive registration costs, which can easily double the basic price.

Yet Chinese buyers snapped up about 110,000 British cars last year, another record.

A Bentley Mulsanne was one of the top three luxury cars to experience a sales boom [PH]

Sales of luxury cars took a real hammering in 2009 but they have bounced back across all markets

David Bailey

"It's the image and history of Rolls-Royce and Bentley which makes them so attractive," says David Bailey, professor of industrial strategy at Aston Business School in Birmingham.

"Sales of luxury cars took a real hammering in 2009 but they have bounced back across all markets.

"In China the super-rich want to show off their wealth by driving premium cars.

"Another factor is that these cars can be made bespoke so you are buying something unique.

If you want a cocktail dispenser in the back or diamond-encrusted fittings, that's not a problem."

It's claimed some overseas owners are spending up to £1million on a single luxury car.

With that sort of budget fuel consumption of about 12 miles per gallon around town doesn't really matter.

Both Rolls-Royce, founded in 1906, and Bentley, established in 1917, are now German owned although the cars are still made in the UK. Another premium marque Jaguar Land Rover now has Indian owners.

Yesterday it announced a bumper 2013, having delivered 425,000 vehicles worldwide.

All three manufacturers have retained their British identity and sense of heritage, which is a big advantage.

China has its own upmarket brand Red Flag but Professor Bailey adds: "When it comes to luxury cars Britishness stands for quality, exclusivity and good design going back many years."

THE impact of celebrity ownership, including the William and Kate effect, is harder to measure.

It's claimed the Duke and Duchess of Cambridge's choice of a £250,000 Bentley Flying Spur gave the company another fillip.

Their new runabout boasts a handcrafted walnut interior, champagne cooler, wifi connection and heated leather seats with a massage function.

Bentley did particularly well in the US last year.

Range Rover Autobiography is a make that has been made popular by Victoria Beckham [GETTY]

The royal fleet also contains several Range Rovers, while so-called baby Bentleys are the car of choice of countless Premier League footballers.

The Sultan of Brunei has a Rolls-Royce fleet and Paris Hilton and Kim Kardashian are also fans.

Daniel Craig and Brad Pitt are among the owners of the Range Rover Autobiography.

Victoria Beckham was enlisted to design a limited edition Range Rover Evoque. Priced at £80,000 it was reportedly aimed mainly at China's emerging middle-class market. The company now has 130 dealerships there.

Jonathan Visscher of the Society of Motor Manufacturers and Traders says: "The focus for luxury cars is really on exports and about 80 per cent go abroad. British-made vehicles compare favourably with cars built anywhere in the world. Drivers want the best of the best.

"The celebrity factor will certainly have an effect, adding to the global appeal of British-made cars. It makes ownership aspirational."

Car exports bring £30billion into the UK economy and it's estimated up to one million British workers rely on the motor industry for their livelihoods.

Every car sold has a positive knock-on effect for the parts, servicing and other associated trades. Taxes on car sales also bring money into Treasury coffers.

Related articles

Industry experts point to new relatively untapped markets, including India, Brazil and Indonesia.

Figures out later this month are expected to show that the home market is also thriving. Last year 2.2 million new cars were registered in the UK.

The car industry, with two of our best-loved badges Rolls-Royce and Bentley leading the way, is helping to get the British economy motoring again.

What do you get for your money?

ROLLS-ROYCE PHANTOM: Basic price about £305,000, top speed 150mph, choice of 44,000 colours. Extras: inbuilt jewellery box, wood veneers can be made from trees on owner's land, solid gold Spirit Of Ecstasy emblem on bonnet. The interior of one recently customised model was encrusted with 446 diamonds. Another was equipped with 1,000 fibre-optic interior lights for a starry night sky effect.